Selling Your Lancaster, NY House With Old Building Permits: Who Do You Talk to First?

By Merritt Kreutzer, REALTOR® | WNY Metro Roberts Realty

What should you do about old building permits before selling your house in Lancaster, NY? If work was done on your Lancaster home without a permit, or a permit was pulled and never closed out, the order you handle it in matters as much as the work itself. Before you call the town, gather what you have and talk it through with your agent and your real estate attorney. Then decide, with good advice, what to do and when.

Think about the projects that add up over the years. A finished basement. A deck. A bathroom that moved. A shed, a pool, a garage, an addition. Some of that work was done by contractors who pulled permits and called for the final inspection. Some was done on weekends. Some was done by the owner before you, and you may never have seen the paperwork.

I serve on the Town of Lancaster Zoning Board of Appeals. The views in this article are my own, not the board's.

A pattern I see often: a homeowner applies for something new, and the application brings older work to light. Sometimes the work was never permitted. Sometimes a permit was pulled and never closed out, and nobody followed up. Very often the person who did that work is a previous owner. The current owner did nothing wrong, and they are the one left to sort it out, usually in the middle of a project they were excited about.

That is why I care about the order of steps. The same history can be a manageable item on a plan or a surprise with a deadline attached, depending on when and how it comes up.

It matters because it can come up during a sale, and answers take time.

New York's Property Condition Disclosure Statement, the form a seller of a house completes, asks whether there are certificates of occupancy related to the property. You answer yes, no or unknown, and explain if the answer is no. Questions can also come from the buyer, the buyer's attorney or the home inspector, especially about work anyone can see: a finished lower level, a large deck, an addition that clearly came later than the rest of the house.

Before you list, you control the timing. After you accept an offer, every open question has a closing date, a moving truck and possibly a lease on the other side of it.

Because it is worth understanding your options before anything is set in motion.

Closing out an open permit usually means an inspection. An inspection is a visit to your home by someone whose job is to look at code compliance, and they may notice other work while they are there. Most of the time that is fine. Sometimes it turns one item into several, each with its own requirements and timeline.

I am not suggesting you avoid the building department. Depending on what you find, closing things out properly may be the best path, and the building department is where that happens. My point is about the order: know what you have, get advice, and then go in with a plan. Your attorney is the one to advise you on what a records request or an inspection could lead to in your situation, and on how anything should be disclosed. I do not give legal advice. What I can do is show you how each option affects your timing and your money.

What this is not: a way around disclosure. If you know about work that was never permitted or never finished, the answer is to disclose it, with your attorney's guidance, not to hope nobody asks.

You can do this part on your own, at your kitchen table, with nothing set in motion.

Pull your papers. Permits, contractor invoices, inspection notices, warranties, anything from the town or village. Keep your survey and your abstract of title in the same folder, since buyers and their attorneys are likely to ask for them anyway.

List every project and roughly when it happened. Include the ones you did and the ones you know about from before you bought. A few categories deserve a closer look:

• Additions, sunrooms and enclosed porches
• Finished basements and converted attics
• Decks, porches and pools
• Attached overhangs and permanent patio covers
• Fences
• Detached garages and sheds or any other outbuildings
• Walls that were moved or removed
• Bathrooms or kitchens that were added or relocated
• Fireplaces and wood stoves

Not every project needs a permit, and what needed one has changed over the decades. You do not have to sort that out alone. The list is what you bring to the next conversation.

Look at the closing papers from when you bought. Your attorney's file from your purchase may show what was checked at the time.

Bring the folder and the list. This is the conversation where you find out what actually matters.

With your attorney, you sort out what may need attention, what your disclosure answers should be, and whether to ask the town for its records on your address. With me, you look at how each path fits your timing, your preparation and, if you are buying again, your next purchase.

You will generally end up in one of a few places.

Nothing to do. The work was permitted and closed, or never needed a permit. You go into your listing with your papers in order.

Close it out before you list. An open permit often means the work was done and the final inspection was never scheduled. With a plan and enough lead time, you take care of it before buyers are involved. If it is a deck or other outdoor work, plan around the weather.

List knowing exactly where things stand. With your attorney's guidance on disclosure and the contract, you go to market with the facts on the table and a plan for the questions they will raise.

Each one is workable. The version that costs time and leverage is finding out after a buyer's attorney asks.

When the time comes to contact the town, it depends on where your home sits.

Lancaster includes the Village of Lancaster and part of the Village of Depew, so a Lancaster homeowner lives in one of three places: the town outside both villages, the Village of Lancaster, or the Lancaster side of Depew. Lancaster's building department handles permits for both the town and the Village of Lancaster. The Village of Depew has its own code enforcement officer in its building department.

Not sure which applies to you? Your tax bills are a good clue. A home in either village gets a village tax bill in addition to the town and county bill and the school tax bill. My article on property taxes when you sell a Lancaster house this winter explains those bills, and my Lancaster area page shows how the town and the villages fit together.

This is the other side of what I see at the board. A buyer closes on a house, applies a year later to put in a fence, a pool or a shed, and learns that earlier work was never permitted or closed out. Now it is their problem.

If you are buying and already know you want to add on or renovate, say so early. Ask about the history of past projects, and ask your attorney, during attorney review, whether the town's records for the address should be checked before you close. It is much easier to sort out while the house still belongs to someone else.

It can change your timeline, which is the main reason to start early.

If something needs an inspection or a correction, it has to fit before your listing date or alongside it, together with preparation, photos and, if you are buying again, your next purchase. My article on how long it takes to sell a house in Lancaster walks through the stages.

On price, I would not guess at a number without knowing the details. When I put together a pricing recommendation, I want to describe your home accurately, including any space that was added or finished, and that starts with knowing its history.

One more caution. If you are planning projects before you sell, find out whether they need a permit and leave time to close it out. Starting something new and leaving its paperwork open repeats the problem. My article on what adds the most value before selling in Lancaster can help you decide which projects are worth doing at all.

"The previous owner took care of it." Maybe. The paperwork does not always come with the house.

"It was years ago, so it does not matter." An open permit does not close itself with time.

"The home inspector will find anything important." A home inspection looks at the condition of the house. It is not a search of permit records.

"I will call the town and get it all cleared up this week." Possibly. But go in with a plan and your attorney's advice, so one call does not turn into a project you were not ready for.

Start with your folder and your list of projects. Then have the conversation before anything else is set in motion.

If you are thinking about a move in Lancaster and want help putting the timing, the paperwork and the order of steps together before you list, start with a free conversation about your next chapter. You do not need a listing date to begin. My Lancaster checklist for getting ready to sell covers the rest of your preparation, and my article on how closing works in Western New York explains what the attorneys do once you have a buyer.

Can I sell my Lancaster house with an open building permit or unpermitted work?

Often, yes, but it needs a plan. Talk with your real estate attorney about disclosure and your options before you list, and with your agent about how it affects your timing.

Should I call the building department before I talk to anyone?

I suggest gathering your own papers and talking with your attorney and agent first, so you understand your options before anything is set in motion. Then contact the right office with a plan.

Who issues building permits in Lancaster, NY?

Lancaster's building department handles permits for both the town and the Village of Lancaster. On the Lancaster side of Depew, the Village of Depew has its own code enforcement officer in its building department.

Does the New York disclosure form ask about certificates of occupancy?

Yes. New York's Property Condition Disclosure Statement asks whether there are certificates of occupancy related to the property, with yes, no and unknown as answers. Your attorney can help with any answer you are unsure about.

I am buying a Lancaster home and want to renovate. What should I ask?

Ask about the history of past projects, and ask your attorney during attorney review whether the town's records for the address should be checked before you close.